The parliamentary committee set up to determine the future of the controversial television reach rule will recommend that it be scrapped in its final report due on Monday.

However, as expected, the committee will stipulate that there must be legally enforceable safeguards for local TV programs in regional areas.

The decision of the committee, which met on Wednesday, could act as a catalyst for a major shake-up of the local free-to-air TV industry, as the rule prevents metropolitan TV networks from merging with regional broadcasters. It prohibits a TV licence owner from reaching more than 75 per cent of the national population.

While TV industry players do not expect the Labor federal government to act on the committee’s recommendation in the final week of parliament before the September 14 election, there is a widespread expectation that a ­Coalition government, assuming it wins power, might remove the rule in its first electoral term.

It is understood all members of the joint select committee, which is chaired by Labor Senator
Doug Cameron
, agree that the rule was outdated in the digital age. Yet there is a deep concern among many committee members that local TV production, especially for news, be protected in the event of mergers.

The key issues are: how these safeguards can be made enforceable; and how to determine what is an appropriate level of local content.

The committee’s draft report, which went to members for discussion last week, recommended that the rule be abolished, with the proviso of ­protecting local content.

The committee had sought a one-week extension to its original deadline for the final report.